Taxation of interest – amendments to Corporate Income Tax Act adopted

On 5 June 2008, the European Commission sent Latvia a letter of formal notice (the first stage of the infringement procedure under Art. 226 of the EC Treaty) regarding its discriminatory rules on the deductibility of interest paid to non-residents (case No. 2007/2459). The Latvian government had acknowledged that the Latvian corporate income tax (CIT) rules were incompatible with EC…
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